Hello everyone!
We have had a couple of employees who absconded or just left a message saying they aren't coming back. We sent them termination letters. During the calculation of the final settlement, do I include notice period recovery? Technically, they didn't resign or serve out the notice period. On the other hand, on the record, it's the employer who has terminated.
I believe the notice period should be recovered but would like to know your views and what is right by law. Thanks in advance.
From India, Bangalore
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4We have had a couple of employees who absconded or just left a message saying they aren't coming back. We sent them termination letters. During the calculation of the final settlement, do I include notice period recovery? Technically, they didn't resign or serve out the notice period. On the other hand, on the record, it's the employer who has terminated.
I believe the notice period should be recovered but would like to know your views and what is right by law. Thanks in advance.
From India, Bangalore
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If you have mentioned in the termination letter that they are terminated for absconding, then yes, you can and should recover notice pay.
If you have not mentioned that, just ensure your internal processes records are kept in case anyone ever brings up the matter.
From India, Mumbai
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If you have not mentioned that, just ensure your internal processes records are kept in case anyone ever brings up the matter.
From India, Mumbai
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Dear Colleague,
As rightly mentioned by the colleague, if you send a normal termination letter, then you, as the employer, are liable to pay notice pay as per the clause of the appointment order. What you need to do is give a brief that the talents have absconded from such and such date, and you had sent letters (give all references) despite which no action was taken by the talents. Hence, under the ground of "Abandonment of Service," the termination notice is sent. You may also add a clause claiming notice pay, etc. However, in reality, no one pays back the notice pay after leaving. If they do worry about receiving a relieving order or an experience certificate from your organization, there are remote chances of getting it. Nonetheless, you may put it on paper and send it as communication for records.
From India, Chennai
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As rightly mentioned by the colleague, if you send a normal termination letter, then you, as the employer, are liable to pay notice pay as per the clause of the appointment order. What you need to do is give a brief that the talents have absconded from such and such date, and you had sent letters (give all references) despite which no action was taken by the talents. Hence, under the ground of "Abandonment of Service," the termination notice is sent. You may also add a clause claiming notice pay, etc. However, in reality, no one pays back the notice pay after leaving. If they do worry about receiving a relieving order or an experience certificate from your organization, there are remote chances of getting it. Nonetheless, you may put it on paper and send it as communication for records.
From India, Chennai
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In cases of abandonment of service, the notice period salary can be recovered from the terminal dues of the employee. This has been done in many cases.
From India, Mumbai
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From India, Mumbai
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Dear All,
A lot of discussions happen on this topic, but still a lot of ambiguity prevails on this. We can deduct from terminal dues, but we cannot deduct from gratuity as it is protected from deductions, and we cannot deduct from the bonus as that is also protected by law. The only option is to deduct notice pay from final wages and EL wages.
Also, during the notice period, if the exiting employee remains absent for more than a week, can we deduct pay, or can we ask the employee to extend the notice period?
I would like to know the legal advice on this.
From India, Coimbatore
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A lot of discussions happen on this topic, but still a lot of ambiguity prevails on this. We can deduct from terminal dues, but we cannot deduct from gratuity as it is protected from deductions, and we cannot deduct from the bonus as that is also protected by law. The only option is to deduct notice pay from final wages and EL wages.
Also, during the notice period, if the exiting employee remains absent for more than a week, can we deduct pay, or can we ask the employee to extend the notice period?
I would like to know the legal advice on this.
From India, Coimbatore
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GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx
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